April 23, 2018
In the local currency market last week, the rupee/dollar parity traded almost flat on the interbank market. However, the rupee in the open market came under renewed pressure against the dollar as an abrupt rise in dollar demand dragged the rupee value to historic lows due to short dollar supplies. Trading in currency in the open market remained volatile throughout last week. The differential in the interbank and open market dollar rates have risen from 95paisa to Rs1.73 in just one week. In interbank foreign exchange dealings, the week commenced with the parity trading little changed at Rs115.61 and Rs115.62 on Monday against the last closing at Rs115.60 and Rs115.62.
In the following three sessions, it did not show any change and traded flat, hovering in narrow-band in the Rs115.61/62 range. The rupee in the open market came under pressure as an rise in dollar demand dragged the rupee value to historic lows. On Friday the rupee managed to recover with the parity trading at Rs115.60 and Rs115.61 at the close of the week. In the open market, the rupee nose-dived against the dollar, breaching the Rs117 barrier and hitting all-time lows. On Monday the rupee did not show any change against the dollar, retaining previous weekend rate flat at Rs116.50 and Rs116.80 due to dull dollar demand.
On Tuesday, however, the dollar drifted higher to trade at Rs116.60 and Rs116.90. The dollar further extended overnight firmness on Wednesday because of fresh surge in the foreign currency demand which enabled it to advance to Rs116.70 and Rs117.00. On Thursday the dollar surpassed previous all-time high against the rupee hitting new peak at Rs117.20 and Rs117.50. The rupee remained under downward pressure against the dollar in the open market on Friday closing the week at Rs117.40 and Rs117.70.
Against euro, the rupee sharply weakened last week. The euro was seen trading at all-time high against the rupee, hovering between the low of Rs142.75/Rs144.25 and high of Rs144.60/Rs146.10. After commencing the week on a stable note, the parity traded unchanged on Monday retaining weekend level flat at Rs142.75 and Rs144.25.
On Tuesday however, the rupee tumbled to fresh lows at Rs143.75 and Rs145.25. On Wednesday the euro managed to hit another new peak at Rs144.00 and Rs145.50 while on Thursday the rupee plunged against the euro at Rs144.60 and Rs146.10. However, the week ended on a positive note as the rupee managed to recover on Friday changing hands at Rs144.30 and Rs145.80.